Tesla profits fall despite price cuts

Tesla reported record-breaking results after delivering its most vehicles ever.

The electric car maker revealed profits of £11.4 billion for 2022, up 85 per cent year-on-year, while revenue rose 51 per cent to £65.7 billion.

It followed fourth-quarter profits for the group of £3.3 billion, up 43 per cent on 2021 and beating market expectations.

Expansion: Tesla will inject more than £2.9bn to build two new factories at its Nevada site, one for its long-awaited electric semi-truck (pictured) and the other for its 4680 battery.

The results came as the firm delivered a record 405,278 electric cars in the final three months of the year. Around 439,701 vehicles rolled off its production lines in that period, the most ever.

The numbers mean Tesla’s delivery figures for 2022 hit a record of more than 1.3 million as the firm starts production at new factories in Texas and Germany.

The results come after Tesla has made steep price cuts in the US, Europe and China as it seeks to fend off increased competition from other carmakers as they seek to enter the sector.

While the company acknowledged that its average selling prices had been ‘generally trending downwards for several years’, it highlighted that increasing affordability was ‘essential’ and that despite the decline, it The profit margin has increased over time. The firm’s shares were slightly lower in after-hours trading on Wall Street.

The findings came as Tesla unveiled plans for a multibillion-pound expansion of its Nevada gigafactory as it pushes ahead with plans to mass-produce a new battery and its long-awaited electric semi-truck. is growing

The carmaker will inject more than £2.9 billion into the site to build two new factories, one to make trucks and the other its 4680 battery.

The 4680 is a key component for Tesla to meet its goal of halving battery costs and increasing power cell production 100 times by the end of the decade.

Meanwhile, Tesla’s results will provide some comfort to its boss Elon Musk, the world’s second-richest man, who is currently embroiled in a court battle amid claims he tweeted in August 2018. After deceiving investors that he had ‘funding secured’ to take Tesla private. .

The tweet sent the company’s share price soaring, but it later fell back when it became clear a deal had not been agreed.

On Tuesday, Musk told a jury in San Francisco that he had ‘no nefarious motives’ and that he could have raised funds from several private investors to finance the purchase.

But it admitted it did not have binding contracts to provide the necessary cash from investors.

Meanwhile, Musk is leading efforts to revive the fortunes of Twitter, the social media website he bought last year for £36 billion after a protracted legal battle erupted after he backed out of the acquisition. tried to.

The firm is struggling with reduced advertising spending as the global economy slows, while Twitter also finds itself on the receiving end of a lawsuit from the Crown Estate over unpaid rent for its London headquarters.

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